Comparing Brokerage Models
A straight forward explanation of the fundamental difference in the team concept brokerage and the traditional brokerage model in the real estate industry.
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Transcript
JOHN: Hey, guys. John Jones here with another edition of Tuesday Morning Coffee. Today’s we’re going to talk about the differences between a traditional real estate company and a team concept company. A lot of times, the public really doesn’t understand the differences, so I’m going to try to clear that up today. Of course, I’m coming from my company. John Jones Real Estate is a team concept-based company. But I worked under a traditional umbrella or traditional brokerage firm for many years. So let’s clear some things up. First, let’s talk about a traditional company.
A traditional company in our area is your Bob Parks, your Kelly Williams, your Exit Realty, Coldwell Bankers of the world. These are companies that are set up with a brokerage house of many independent agents working in that brokerage house. Sometimes those do include pockets of teams also in that brokerage house. That’s how I operated for 14 years at Coldwell Banker. Each agent works independently. So in other words, basically, you might have 50 different small businesses within an office. Fifty different people that are competing as well as trying to work together in the same office with benefits of services that that brokerage company may offer.
The best analogy I can give is kind of like a shopping mall. We go down here to a shopping mall like Stones River Mall, Cool Springs. You walk in and there’s many different businesses. All of them are competing, but yet, all of them are working together and receiving the benefits of what the mall offers such as common areas, places to sit, food courts, Santa at Christmas, very similar to a traditional office. Different agents, all shapes and sizes are in there competing against each other as small businesses, but yet, they receive the benefit that a brokerage company can offer them. A professional setting, an office, a lobby, copying machines, fax machines, those kind of things.
Now let’s switch gears to a team concept company, which is what we operate under. We are a team of people, in our case 11 people, with basically seven salespeople and four administration where we’re all kind of working together and sharing in the success of that company. In other words, we have a full-time listing coordinator that systematically takes care of all our listings, helps us input stuff into the MLS, oversees the listing paperwork, and that kind of thing. Closing coordinator, which stays on top of every transaction and walks it to closing, staying on top of all the little details. And there’s a system in place for each person.
An internet marketing specialist that helps us put our listings out there to give it the most exposure it possibly can receive. Our salespeople are constantly working the leads, sharing in that the leads that come into our office on a daily basis, whether it be a phone call, internet lead, or what have you, all trying their best to diligently serve the client and hopefully turn the potential customer into a client. But all in all, I tell people it’s 11 people for the price of one trying to work together and give you, the client, the best real estate experience possible. So hopefully you’ll tell you friends and family about us.
I’m not saying one’s better than the other, but I will tell you there’s a lot of great agents in the traditional setting, and obviously, I think there’s a lot of great agents in the team setting. But I just wanted to kind of clarify the differences between the two so that helps you as a consumer understand when you call a certain office kind of what you might be receiving. So anyway, thanks. If you have any questions, always feel free to call us, 867-3020.
